EFCC asked to investigate N70b Kwara rice project
The convener of LUC, Mr. Ikechukwu Ikeji, alleged that they decided to raise the alarm and arouse public interest in the rice project described as a deceptive scheme deliberately conceived by the present administration to siphon public funds.
Ikeji alleged that when reporters confronted the state government about the company which it claimed would be injecting about 340 million Euros into the rice project, it dismissed the allegations as inconsequential.
He alleged that all the searches conducted on Vasolar Consortium of Spain revealed that the company, which claimed to be based in a non-rice producing country, had no local recognition as it was not known to the Spanish Chamber of Commerce and had no experience in rice cultivation, adding that "its only known existence is through this deal with the Kwara State Government."
Ikeji said: "This is a big surprise for a company planning to invest 340 million Euros in four years. Who are the partners in Vasolar Consortium of Spain? What are their pedigrees? What is the source of the resources they are bringing in?
"We have conducted a search at the Corporate Affairs Commission (CAC) on the name and directors of Vasolar Consortium. The name was not found both online and manually. The implication is that Vasolar Consortium does not exist in the records of CAC. Meaning, it is a non-existent company or is not registered to do business in Nigeria either by way of being incorporated or by way of exemption under Section 56 of the Companies and Allied Matters Act 1990 (CAMA)."
The convener of the LUV challenged the government to provide incontrovertible evidence of where the company has carried out "this type of project before in any part of the world," adding that "if there are none, it then follows that you cannot give what you don’t have. If the company is non-existent, the government is trying to place something on nothing, which to all intent and purpose is practically impossible."
LUC raised questions on the economies of the business proposal of Vasolar Consortium, saying when the cost of land and the amount in the escrow account are added, "the total investment by the Kwara State Government is more than equal to what the consortium is purportedly bringing in.
"Hence it can be safely assumed that Vasolar is just going to use Kwara State’s money- that is if there is any actual production to be undertaken."
Ikeji cited the case of Lagos State Government which is going to take 10 per cent equity for providing land for a green field refinery in the EPZ, explaining that "this means whenever the project takes off and profit is being made, Lagos will be making lots of revenues through Pay As You Earn (PAYE) and profit sharing without tying down money that can be used to enhance the lives of the people."
In the case of Kwara, he alleged that the financial returns to the government for the enourmous investment was not stated, adding, " what is the equity of Kwara State Government in this transaction? Or is the government not expecting any form of return within a definite time frame? Is this organisation, Vasolar Consortium, not making any profit too?"
Quoting the Food and Agriculture Organisation (FAO), the rights group said while Nigeria is ranked the 19th producer of rice worldwide, Spain is not ranked at all.
The group alleged on the possibility that there is a plan to use a new generation bank involved in the project as a medium for money laundering and asked the EFCC to evaluate and investigate the exact interest of the bank in the entire transaction.
Cloud Tag: What's trending
Click on a word/phrase to read more about it.
Kwara State Branch Of The National Library Kwara State Fish Farmers Association Special Adviser On Digital Innovation UNILORIN Alumni Bursary Dumagi Oyedun Juliana Funke The Herald Afonja Descendants Union Kwara United Yusuf Lawal Ijagbo Jaigbade Alao Suraj Tunji Oyewale Bola Magaji Yemi Sanni Matthew Okedare IYA ALFA NLA National Union Of Road Transport Workers UNIFEMGA Durbar Festival Kwara Restoration Project Shehu Jimoh Metro Park Popo-Igbonna Okin High School Ilorin Water Reticulation Oye Tinuoye Olawuyi Sheikh Hamzat Yusuf Ariyibi Omu-aran Oyun Lithium Irepodun Ganiyu Taofiq Olaitan Buraimoh Mohammed Khadijat Kubura TVC Female National Debate Kwara Consultative Forum Ayodele Shittu Bello Oyebanji Ilorin Amusement Park Chief Imam Of Ilorin IsDB Dar-Al-Handasah Consultants Ltd General Tunde Idiagbon International Airport Ilorin Alagbado Mufti Of Ilorin Kwara NIPR Funmilayo Oniwa Kale Bayero Olohungbebe Just Law Forum Akeem Lawal Federal Polytechnic Offa Abdulwahab Olarewaju Issa Ilorin Talaka Parapo Ajeigbe Overland Abdullahi Biffo Abdulrahman Iliasu Sulyman Atolagbe Alege Yoonus Lawal Ado Bayero Femtech Wahab Issa Olumide Daniel Ibitoye Balikis Jawondo Muazam Nayaya All Confederation Of Principals Of Secondary Schools Principal Private Secretary Kabir Shagaya Students Union Government Oba David Oyerinola Adedunmoye Oko Erin Turaki Temitope Ogunbanke